People trade money for less hassle all of the time - like paying for a porter to carry luggage!

By requesting a jury trial, they increase the amount of risk, time and money involved if the parties do not reach a settlement.

Not worth risk.

I does have risk. 

I feel like the more doors the lower the risk.

This happens...it’s the risk you take in development but doing all the due diligence you can on the front end mitigates that risk substantially .

If your getting $4,600 in rent from 8 units I’m assuming it’s a C or D neighborhood and in that case you want a 10+ cap rate to compensate yourself for the risk.

There are multiple markets in the country I'd say are at the top of slightly over the top and would be a risk for such a transaction. 

In my opinion, keeping the home and getting that HELOC out would allow you to have a future asset which an increasing rental market (more potential cash flow), give you funds to proceed on your next deal and invest, and the diversification in your portfolio to shield you from some market risks. 

But that is a risk you must feel comfortable taking!